Question: Parker, a 5 0 - year - old earning $ 1 2 0 , 0 0 0 annually, plans to retire in 1 5 years

Parker, a 50-year-old earning $120,000 annually, plans to retire in 15 years and estimates living until age 95 due to his family's longevity. He expects to need 65% of his current salary annually in retirement. Parker anticipates earning a 9% return on his portfolio while working, reducing to 7% during retirement, with inflation continuing at 3%. He currently has $350,000 saved for retirement, and his Social Security benefit is $30,000 annually (in todays dollars) at full retirement age of 67. However, his Social Security benefit will be reduced by 62/3% for each year he collects before full retirement age. Calculate how much Parker needs to save each year to meet his retirement goals.
Group of answer choices
$2,465
$2,987
$4,975
$6,855

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